Quick Summary
Are you considering investing outside of India? US ETFs might be your best bet. They give you access to global giants like Apple and Amazon, all while keeping things simple and affordable. These funds offer great diversification, help manage risk, and are easy to buy through apps or brokers from India.
Just keep an eye on things like fees, performance, and taxes. Whether you want growth, stability, or global exposure, thereтАЩs a US ETF for your goals. This blog breaks it all down and lists the top US ETFs you can consider today.
What Are US ETFs? A Complete Overview for Indian Investors
US Exchange-Traded Funds (ETFs) are investment funds that trade on American stock exchanges like the NYSE and NASDAQ. For Indian investors, these represent one of the most efficient ways to gain exposure to US markets, including technology giants like Apple, Microsoft, and Google, as well as diverse sectors from semiconductors to gold.
Indian investors have two primary routes to invest in the US markets. Here’s a comprehensive comparison of both of those.
| Feature | US ETFs | India-based US Mutual Funds |
| Trading | Traded like stocks on exchanges | Bought and sold at end-of-day NAV price |
| Costs | Lower expense ratios typically between 0-0.2% | Higher expense ratios due to active management; typically between 0.5-1.5% |
| Transparency | Holdings are disclosed daily | Holdings are disclosed quarterly |
| Flexibility | Buy/sell anytime during market hours | Fixed trading time at NAV |
| Global Access | Direct exposure to US companies | Limited to funds investing in US markets |
| Tax Efficiency | STCG – income tax slab rate LTCG – 12.5% | For US Equity MFs: STCG – 20%LTCG – 12.5% (on gains above Rs 1.25 lakh) For US Fund of Funds (FoF): Taxed at slab rates, regardless of holding period тАУ like debt funds. |
| Returns (5-Year Avg. CAGR) | Typically 20-30% – Equity ETFs, (up to 30% or higher for Sector ETFs, and focused funds) | 5тАУ16% (India-based US equity mutual funds) |
| Lock-in Period | Do not have any lock-in periods | Exit load charged if redeemed before the specified period |
Updated Date – 5 July 2025
List of Top US ETFs to Buy from India
Now, letтАЩs get into the top US ETFs that you can invest in and also understand the criteria for selecting them:
Criteria for Selection
When selecting top US ETFs for Indian investors, performance is a primary factor, emphasizing consistent returns over various market cycles. Also, the expense ratio is crucial, as lower fees directly impact long-term returns.
Similarly, assets under management (AUM) indicate the ETFтАЩs popularity and liquidity, with larger AUMs generally offering better trading efficiency. At the same time, historical returns provide insight into the ETFтАЩs track record but are balanced against future growth potential.
Biggest US ETFs Table
HereтАЩs a curated list of top US ETFs accessible to Indian investors, representing various market sectors and investment strategies:
| ETF Name | Ticker | Price (USD) | AUM (Billion USD) | Category |
| Vanguard S&P 500 ETF | VOO | 573.61 | 688.64B | Large Blend |
| SPDR S&P 500 ETF Trust | SPY | 624.06 | 637.59B | Large Blend |
| iShares Core S&P 500 ETF | IVV | 627.03 | 627.18B | Large Blend |
| Vanguard Total Stock Market ETF | VTI | 307.50 | 502.20B | Large Blend |
| Invesco QQQ Trust Series I | QQQ | 556.25 | 352.74B | Large Growth |
| Vanguard Growth ETF | VUG | 442.50 | 175.90B | Large Growth |
| Vanguard FTSE Developed Markets ETF | VEA | 57.31 | 162.58B | Foreign Large Blend |
| iShares Core MSCI EAFE ETF | IEFA | 83.86 | 141.27B | Foreign Large Blend |
| Vanguard Value ETF | VTV | 178.25 | 139.96B | Large Value |
| Vanguard Total Bond Market ETF | BND | 73.09 | 130.59B | Intermediate Core Bond |
Updated Date – 5 July 2025
Best Performing ETFs Across Key Categories
Index-Tracking: Capturing Broader Market Trends
Index ETFs track predefined strategies like value, momentum, or revenue-weighting, offering structured exposure beyond standard market-cap benchmarks.
Top Performers:
| ETF Name | Ticker | Returns (5-Year) | Expense Ratio |
| Invesco S&P MidCap 400 Pure Value ETF | RFV | 156.00% | 0.35% |
| Invesco S&P 500 Momentum ETF | SPMO | 155.65% | 0.13% |
| Invesco S&P SmallCap 600 Revenue ETF | RWJ | 152.00% | 0.39% |
| Invesco S&P SmallCap 600 Pure Value ETF | RZV | 138.68% | 0.35% |
| Invesco QQQ Trust | QQQ | 120.56% | 0.20% |
Updated Date – 5 July 2025
These funds demonstrate how alternative index strategies can outperform traditional benchmarks in certain market conditions, especially over longer investment horizons.
Technology ETFs: The Digital Transformation Winners
Technology continues to be a dominant force in the market:
Top Performers:
| ETF Name | Ticker | Returns (5-Year) | Expense Ratio |
| iShares U.S. Technology ETF | IYW | 157.99% | 0.39% |
| Technology Select Sector SPDR Fund | XLK | 144.10% | 0.08% |
| iShares U.S. Tech Breakthrough Multisector ETF | IETC | 144.06% | 0.18% |
| Fidelity MSCI Information Technology Index ETF | FTEC | 142.68% | 0.08% |
| Vanguard Information Technology ETF | VGT | 139.95% | 0.09% |
Updated Date – 5 July 2025
These funds provide exposure to tech giants like Apple, Microsoft, and NVIDIA while maintaining low expense ratios.
Financial ETFs: Banking on Economic Growth
Financial sector ETFs have shown strong performance as interest rates and economic conditions improved:
Top Performers:
| ETF Name | Ticker | Returns (5-Year) | Expense Ratio |
| Fidelity MSCI Financials Index ETF | FNCL | 130.63% | 0.08% |
| First Trust Financials AlphaDEX Fund | FXO | 129.77% | 0.62% |
| Vanguard Financials ETF | FXO | 129.39% | 0.09% |
| iShares U.S. Financials ETF | IYF | 123.36% | 0.39% |
| iShares Global Financials ETF | IXG | 113.07% | 0.41% |
Updated Date – 5 July 2025
These ETFs reflect steady gains across banking, insurance, and asset management, supported by rising rates and a resilient US economy.
Crypto ETFs: Access to Digital Assets Without the Complexity
Crypto ETFs offer exposure to digital assets like Bitcoin and Ethereum, allowing investors to participate without holding crypto directly.
Top Performers:
| ETF Name | Ticker | Returns (1-Year) | Expense Ratio |
| Bitwise Bitcoin & Ether Equal Weight Strategy ETF | BTFX | 137.40% | 1.86% |
| Valkyrie Bitcoin Miners ETF | HODL | 93.43% | 0.25% |
| iShares Bitcoin Trust | IBIT | 93.14% | 0.25% |
| Fidelity Wise Origin Bitcoin Fund | FBTC | 93.10% | 0.25% |
| Valkyrie Bitcoin Fund | BRRR | 93.07% | 0.25% |
Updated Date – 5 July 2025
These ETFs have benefited from the recent recovery in digital assets, providing regulated market access to the crypto economy.
Global ETFs: International Diversification
International exposure through global ETFs has shown impressive results:
Top Performers:
| ETF Name | Ticker | Returns (5-Year) | Expense Ratio |
| Global X MSCI Argentina ETF | ARGT | 252.03% | 0.59% |
| Global X MSCI Greece ETF | GREK | 199.50% | 0.57% |
| Global X U.S. Infrastructure Development ETF | PAVE | 195.51% | 0.47% |
| iShares Global Tech ETF | IXN | 135.56% | 0.41% |
| iShares MSCI Europe Financials ETF | EUFN | 118.35% | 0.48% |
Updated Date – 5 July 2025
These ETFs reflect investor interest in overseas growth, infrastructure spending, and economic recovery beyond U.S. and Indian borders.
Semiconductor ETFs: Leading the Tech Revolution
The semiconductor sector has been the absolute champion of ETF performance, with several funds delivering exceptional returns:
Top Performers:
| ETF Name | Ticker | Returns (5-Year) | Expense Ratio |
| VanEck Semiconductor ETF | SMH | 269.88% | 0.35% |
| iShares Semiconductor ETF | SOXX | 169.71% | 0.35% |
| Invesco Semiconductor ETF | PSI | 152.59% | 0.56% |
| SPDR S&P Semiconductor ETF | XSD | 138.18% | 0.35% |
| Global X Semiconductor ETF | SHOC | 129.99% | 0.40% |
Updated Date – 5 July 2025
These ETFs have capitalized on the AI boom, 5G expansion, and increased demand for chips across all industries.
Gold ETFs: The Ultimate Safe Haven
Gold ETFs provide portfolio diversification and inflation protection:
Top Performers:
| ETF Name | Ticker | Returns (5-Year) | Expense Ratio |
| Abrdn Standard Physical Gold Shares ETF | SGOL | 86.12% | 0.17% |
| Perth Mint Physical Gold ETF | AAAU | 85.97% | 0.18% |
| GraniteShares Gold Trust | BAR | 85.87% | 0.17% |
| VanEck Merk Gold Trust | OUNZ | 85.43% | 0.25% |
| iShares Gold Trust | IAU | 85.35% | 0.25% |
Updated Date – 5 July 2025
These funds offer efficient access to physical gold exposure, making them a useful portfolio hedge against inflation and geopolitical risks.
Artificial Intelligence ETFs: The Future is Now
AI-focused ETFs are capturing the revolutionary potential of artificial intelligence:
Top Performers:
| ETF Name | Ticker | Returns (5-Year) | Expense Ratio |
| Franklin Intelligent Machines ETF | IQM | 163.00% | 0.50% |
| Global X Artificial Intelligence & Technology ETF | AIQ | 109.03% | 0.68% |
| ROBO Global Artificial Intelligence ETF | THNQ | 84.68% | 0.68% |
| WisdomTree Artificial Intelligence and Innovation Fund | AIVL | 54.19% | 0.38% |
| First Trust Nasdaq Artificial Intelligence and Robotics ETF | ROBT | 35.42% | 0.65% |
Updated Date – 5 July 2025
These ETFs reflect investor confidence in AIтАЩs real-world applicationsтАФfrom enterprise software to robotics and next-generation computing.
Dividend ETFs: Steady Income with Equity Upside
Dividend-focused ETFs combine regular income with long-term capital growth, appealing to investors seeking lower volatility and cash flow.
Top Performers:
| ETF Name | Ticker | Returns (5-Year) | Expense Ratio |
| First Trust Nasdaq Technology Dividend Index Fund | TDIV | 120.86% | 0.50% |
| Fidelity Small-Mid Dividend ETF | SDVY | 110.96% | 0.59% |
| First Trust Rising Dividend Achievers ETF | RDVY | 107.82% | 0.48% |
| ProShares S&P Technology Dividend Aristocrats ETF | TDV | 104.09% | 0.45% |
| Fidelity High Dividend ETF | FDVV | 95.88% | 0.16% |
Updated Date – 5 July 2025
These funds highlight how dividend strategies can deliver strong total returns, especially when focused on growth-oriented or consistently profitable companies.
Why Invest in US ETFs from India?
Investing in US ETFs offers Indian investors numerous benefits, including:
Diversification
Investing in these funds spreads your risk across different economic sectors, geographical regions, and market capitalisations. This diversification can help balance your portfolio, potentially reducing overall risk while capturing growth opportunities across various market segments.
Access to Global Giants
US ETFs provide a straightforward path to invest in global powerhouses like Apple, Amazon, and Google. These companies, which drive innovation and shape global markets, are often underrepresented in Indian portfolios.
Hedge Against Domestic Market Volatility
The US economy often moves independently of emerging markets, counterbalancing your India-focused investments. This international exposure can help smooth out your portfolioтАЩs performance, potentially offering more stable returns.
Cost Efficiency
ETFs typically boast lower expense ratios and management fees compared to mutual funds. This cost advantage stems from their passive management style, where the fund simply tracks an index rather than actively picking stocks. Also, lower fees mean more of your investment goes toward actual market exposure, potentially boosting your long-term returns.
Transparency and Flexibility
US ETFs offer transparency and trading flexibility that many investors find appealing. Most ETFs disclose their holdings daily, allowing you to know exactly what you own. Additionally, ETFs trade like stocks on exchanges, enabling you to purchase or sell shares throughout the trading day at market prices.
How can you invest in US ETFs from India?
US ETFs expose many US assets, from broad market indices to specific sectors or themes. If youтАЩre looking to tap into the potential of US markets through ETFs, hereтАЩs a comprehensive guide to get you started.
Direct Investment through US Brokerage Accounts
To invest directly in US ETFs, you must open an account with a US-based broker that caters to international clients. These brokers act as intermediaries, allowing you to buy and sell US-listed ETFs from India. They provide platforms that enable you to execute trades, monitor your investments, and access market research, all while ensuring compliance with relevant regulations.
Steps to Open an Account
Here is a step-by-step guide on how you can open an account with US brokerage account:
- Choose a suitable US broker based on your needs and research.
- Complete the online application form with your details.
- Provide identification documents (typically a passport and PAN card).
- Submit proof of address (such as a recent utility bill or bank statement).
- Complete the W-8BEN form for tax purposes (this certifies your non-US status).
- Fund your account via international wire transfer.
- Once approved, set up your trading platform and invest in US ETFs.
Popular US Brokers
Several US brokers have established themselves as reliable options for international investors looking to access US ETFs, including:
- Charles Schwab: Known for its extensive research tools and wide range of ETF offerings.
- TD Ameritrade: Offers a user-friendly platform and competitive pricing for ETF trades.
- Interactive Brokers: Popular for its advanced trading tools and global market access, including a vast selection of US ETFs.
- Fidelity: Provides a robust platform with a strong focus on ETFs and educational resources.
Using Indian Platforms with International Stock Access
AppreciateтАЩs platform is designed with the Indian investor in mind, eliminating many of the complexities traditionally associated with international investing. HereтАЩs how they make the process of buying US ETFs straightforward:
- User-Friendly Interface: The platform boasts an intuitive design, making it easy for investors to navigate and execute trades.
- Streamlined Account Opening: Appreciate handles the paperwork and compliance requirements, significantly reducing the time and effort needed to set up an account for US investing.
- Wide Range of ETFs: Investors can access diverse US-listed ETFs covering various sectors, themes, and investment strategies.
- Fractional Investing: Appreciate allows you to buy fractional shares of ETFs, making it possible to invest in high-priced ETFs with smaller amounts of capital.
- Real-Time Market Data: The platform provides up-to-date market information and ETF performance data to help inform your investment decisions.
Tax Implications for Indian Investors
Indian investors venturing into ETF trading need to navigate a complex tax landscape. LetтАЩs break these tax regulations to make things easier for you:
Tax on Dividends
Dividends from ETFs are taxable in India тАУ for domestic ETFs, the dividend is added to the investorтАЩs income and taxed at their applicable slab rate. Meanwhile, foreign ETF dividends face a 20% tax Deduction at Source (TDS) in India, with any applicable foreign tax potentially offsetting this amount.
Capital Gains Tax
The holding period determines the tax rate for capital gains on ETFs. For instance, gains from ETFs held for less than 12 months are considered short-term and taxed at the investorтАЩs income tax slab rate. Long-term gains (over 12 months) on equity ETFs enjoy a more favourable rate of 10% on gains exceeding тВ╣1 lakh per financial year.
Double Taxation Avoidance Agreement (DTAA)
DTAAs prevent investors from paying taxes twice on the same income in different countries. India has DTAAs with numerous nations, allowing investors to claim credit for taxes paid abroad against their Indian tax liability. This can majorly reduce the overall tax burden on foreign ETF investments.
Risks and Considerations
Investing in US ETFs from India offers diversification benefits, but itтАЩs crucial to understand the associated risks. These factors can significantly impact your returns and should be carefully considered before making investment decisions.
Currency Risk
The value of your US ETF investments fluctuates with the underlying assets and the USD-INR exchange rate. For example, a strengthening rupee can erode your returns, even if the ETF performs well in dollar terms.
Regulatory and Compliance Risks
Indian investors must navigate regulations from both Indian and US authorities. This includes adhering to SEBI (Securities and Exchange Board of India) guidelines on overseas investments and complying with US tax reporting requirements. Failure to meet these obligations can lead to penalties or restrictions on your investment activities.
Market Volatility
US markets can experience significant swings due to economic, political, or global events. These fluctuations may be more pronounced or occur at different times than in Indian markets. Therefore, it is essential to understand the factors driving US market movements and their potential impact on your ETF holdings.
Conclusion
US ETFs represent an excellent opportunity for Indian investors to diversify globally and participate in the world’s most innovative markets. While both direct US ETF investment and India-based US mutual funds have their merits, direct investment in US ETFs offers superior cost efficiency and better long-term returns for investors willing to navigate the additional complexity.
For Indian investors, the choice between direct US ETF investment and India-based US mutual funds depends on individual preferences for cost, convenience, and control. Those seeking maximum returns and willing to handle additional paperwork should consider direct investment, while those preferring simplicity might opt for the mutual fund route.
Remember to consider your risk tolerance, investment horizon, and tax implications before making investment decisions. The LRS limit of $250,000 per year provides ample room for most retail investors to build substantial US portfolios over time.
Disclaimer: Investments in securities markets are subject to market risks. Read all the related documents carefully before investing. The securities quoted are exemplary and are not recommended.
Watch: Best-Performing US ETFs to Consider in 2025
FAQs
What are US ETFs?
US Exchange Traded Funds (ETFs) are investment vehicles traded on US stock exchanges. They track various indices, sectors, commodities, or assets, offering diversified exposure to US markets.
How can I buy US ETFs from India?
Indian investors can purchase US ETFs through international broking accounts offered by Indian brokers or by opening accounts with US-based brokers. The process typically involves completing KYC (Know Your Customer) requirements, funding the account, and placing orders through the brokerтАЩs platform.
What are the top US ETFs to invest in from India?
Top US ETFs for Indian investors often include broad market index funds like SPDR S&P 500 ETF (SPY) or Vanguard Total Stock Market ETF (VTI). Sector-specific options like Invesco QQQ Trust (QQQ) for technology exposure or SPDR Gold Shares (GLD) for gold investment are also popular.
Are there any tax implications for investing in US ETFs?
Yes, investing in US ETFs has tax implications for Indian investors. Dividends are subject to withholding tax in the US (typically 25% without tax treaty benefits) and are taxable in India. Capital gains are taxed in India based on the holding period тАУ short-term gains are taxed at your income tax slab rate, while long-term gains (held over 24 months) are taxed at 20% with indexation benefits.
What are the risks of investing in US ETFs?
Investing in US ETFs carries several risks for Indian investors. For example, currency risk arises from fluctuations in the USD-INR exchange rate, which can impact returns. Also, market risk involves potential losses due to US market volatility or economic downturns.
